AeroVironment Inc. (NASDAQ:AVAV) shares are trading higher Friday. President Donald Trump announced new import tariffs aimed at boosting U.S. drone manufacturing.
- AeroVironment stock is trading at depressed levels. Where are AVAV shares going?
Trump’s Drone Tariffs Lift the Sector
New import restrictions on foreign-made drones drove a premarket rally across U.S. drone manufacturers Friday, as the Trump administration works to reduce the country’s reliance on unmanned aircraft built overseas.
Trump signed a proclamation Thursday putting steep tariffs on imported unmanned aircraft systems and their components, aiming to strengthen the domestic supply chain. The order sets a 100% tariff on drones weighing more than 25 kilograms or built with capabilities the administration deems particularly sensitive for national security, including thermal imaging and docking stations.
Drones and components from allied countries get a lighter rate. The European Union, Japan, Liechtenstein, South Korea, Switzerland and Taiwan face a 15% tariff, while imports from the United Kingdom carry a 10% rate, so long as nearly all of the hardware, software and underlying technology comes from the U.K. or the U.S.
AVAV’s Chart Shows an Improving but Incomplete Recovery
That policy backdrop is playing out against a stock that is still working to repair a longer-term downtrend on the charts. Shares are trading 14.8% above their 20-day moving average of $165.56, 16.5% above their 50-day average of $163.16 and 9.2% above their 100-day average of $174.15, a signal that the intermediate bounce has traction.
The longer-term picture remains more mixed. AeroVironment is still 16% below its 200-day moving average of $226.32, and the 50-day average remains below the 200-day average following a death cross that formed in March. Shares are down 23.88% over the past 12 months, underscoring that the recent rally has improved the chart without fully reversing the broader downtrend. The MACD line sits above its signal line with a positive histogram, pointing to fading selling pressure even as the longer-term trend has yet to fully turn.
Traders are watching $200.50 as resistance, a round-number level where rebounds have tended to stall, and $175 as support, a level tied to a recent pivot zone near the 100-day moving average. Whether the stock can hold higher lows if it pulls back from resistance may determine whether the recovery continues or fades back toward the mid-$170s.
AVAV Shares Are Climbing
AVAV Price Action: AeroVironment shares were up 2.36% at $193.90 at the time of publication on Friday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
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